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Press release

Red Hat Continues Scale Out of Open Source Architecture with Sistina Acquisition

RALEIGH, N.C

Red Hat, Inc. (Nasdaq:RHAT), the world's premier open source solution provider to the enterprise, today announced that it has entered into a definitive agreement to acquire Sistina Software, a leading storage infrastructure software company. Concurrent with Red Hat's Open Source Architecture strategy, the acquisition will provide Enterprise Linux customers a path to virtualization and vendor-independent storage solutions.

"With enterprise class storage management capabilities in place, Linux operating environments look more trustworthy than ever," said John Webster of the Data Mobility Group.1 Sistina is a leader in what industry data estimates is a $2 billion storage infrastructure marketplace.

Sistina's storage infrastructure software is the foundation for building, integrating and deploying data-sharing storage solutions across the enterprise. Solutions include:

  • Sistina GFS, the industry's most advanced and mature scalable file system
  • Logical Volume Manager (LVM), a major building block in Linux that enables enterprise-level disk volume management by grouping arbitrary physical disks into virtual disk volumes
  • Sistina GFS for Oracle9i RAC, a solution designed to specifically reduce the complexity of implementing and maintaining an Oracle9i RAC system

"The acquisition of the Sistina technology and world class development team, in close collaboration with the open source community, will greatly accelerate the availability and advancement of open source storage solutions for the enterprise," said Paul Cormier, Executive vice president of Engineering at Red Hat.

Sistina's engineering team, consisting of industry experts in clustering and virtualization, will augment Red Hat's development efforts. The integrated team will work to make all of Sistina's technologies open source and available as a part of a subscription in the first half of 2004. Red Hat's acquisition of Sistina is expected to be completed in early January at a purchase price of approximately $31M to be paid through issuance of Red Hat common stock.

About Red Hat, Inc.

Red Hat, the world's leading open source and Linux provider, is headquartered in Raleigh, NC with satellite offices spanning the globe. Red Hat is leading Linux and open source solutions into the mainstream by making high quality, low cost technology accessible. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training and consulting services to its customers worldwide and through top-tier partnerships. Red Hat's open source strategy offers customers a long term plan for building infrastructures that are based on and leverage open source technologies with focus on security and ease of management. Learn more: http://www.redhat.com

Forward-Looking Statements

Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's plans and objectives for future operations, and management's assessment of market factors, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, reliance upon strategic relationships, management of growth, the possibility of undetected software errors, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov.

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About Red Hat

Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.

Forward-looking statements

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.